What is the Difference Between Pay Per View and Subscription?

When it comes to video monetization, PPV and subscriptions are two most preferred options. Creators also prefer these revenue options as they ensure maximum earnings with less hassle.

However, it is natural to feel confused about which revenue model to choose from these two or if you should choose both. Not every content is suitable for the subscription-based business model; the same is true for the pay-per-view model.

To help you with the same, we will describe both revenue models today and their possible benefits and challenges. Therefore, by the end of this article, you will cultivate a better understanding of which revenue model you should opt for.

Let’s get started-

What is On Demand?

On-demand or video-on-demand is the technology of streaming data that brings your favorite TV shows, web series, and movies directly to streaming platforms. The technology uses the internet, cable, or satellite TV to let the viewers stream the content of their choice, and it eliminates the need to rely on regular TVs and their timings.

Netflix, Prime, and HULU are examples of popular and premium VOD platforms; however, there are many other VOD platform options that let creators upload their content and viewers stream it. These VOD platforms also allow creators to earn through various revenue models, such as SVOD, TVOD, and AVOD.

Video Monetization Models

Let’s now uncover the most common monetization options.

➡️ Subscription-Based Video On Demand (SVOD)

SVOD, as the name implies, ensures the creator’s revenue through a subscription economy. The viewer makes these recurring payments weekly or monthly as long as they are interested in your content.

By subscribing to a channel, a viewer can access the channel’s overall content.

➡️ Transactional Video On Demand (TVOD)

TVOD, also known as pay per view streaming, allows viewers to avail a particular piece of content on rent. This revenue option is available on VOD streaming platforms like GUDSHO and is most suitable for live streams, sports matches, or videos you do not want to provide under the subscription category.

The viewer pays for a specific video, movie, match, or live stream and pays for a one-time watch.

What is PPV (Pay-Per-View)?

PPV stands for the Pay-Per-View model that lets viewers take movies, shows, and live events for one-time streaming by paying a rental price. Let’s dive deeper into knowing the PPV model.

➡️ How Does Pay Per View Work?

PPV provides the viewer access to a piece of content that they want to stream online. Once a user pays the rental fee, the streaming service sends a code or link to the user in order to stream.

Such a model works well for event organizers who want to sell their events separately and do not want to include it as a part of the subscription model. Some PPV models also allow the user to purchase the piece of content for a lifetime by paying a fixed fee.

PPV can be used for higher quality or premium content. The creator receives full rights from the broadcasters and can charge their viewers their desired amount. 

➡️ Benefits Of Pay-Per-View

• PPV brings creators the audience interested in streaming your content despite the higher price; it lets you filter out non-subscribers.

• Under the PPV category, you can also provide genre-specific content instead of a bundle. People interested in such genres would be willing to pay separately.

• It allows creators to know which content works best and which doesn’t. Such as, if you create different genres under PPV or different kinds of content such as movies, series, and live events, you can get to know which category brings the most viewers.

• People just looking for one option and don’t want to go through any other content would be interested in signing up for PPV.

➡️ Challenges Of Pay-Per-View

• PPV doesn’t ensure that your audience is as committed as those who subscribe. Since PPVs are a one-time thing, viewers might not return to stream content again.

• By using the PPV model, you can’t forecast your earnings, and it doesn’t guarantee an active income stream.

• It may backfire since PPV charges per content which is expensive compared to subscription-based content, and viewers might not stick for longer.

• Majorly works best only with live streams of something exclusive such as a sports match which viewers can’t find anywhere else. In the case of movies and web series, PPV might not draw much attention as such content stays available on many free streaming platforms.

➡️ When To Monetize With PPV?

Creators who want to increase their revenue potential by putting the content under various revenue models should opt for PPV. Such creators can utilize a hybrid model where they choose multiple revenue options, such as SVOD and TVOD.

Also, if you can avail of live matches, sports events, and other exclusive videos, you should keep such content under PPV instead of subscriptions.

What Is A Subscription?

Subscription is about recurring payments where a viewer subscribes for a week or month by paying the subscription amount.

➡️ How Does The Subscription Model Work?

In the subscription model, it depends on the viewer for how long they want the subscription. After subscribing, the customer gets to stream the entire content that is available for subscribers.

➡️ Benefits Of The Subscription Model

• Recurring payments give creators an active income stream to predict their monthly earnings.

• Subscriptions allow creators to build lifelong relationships with their viewers where they return to subscribe repeatedly.

• Subscription provides customer retention without much hassle. Once you have built trust with your subscribers, they might invite their family and friends to subscribe to your content.

➡️ Challenges Of Subscription

• In subscription models, customer retention mainly depends on the overall cost of the subscription. It can be a challenge to determine the right cost that covers all your expenses and still generates profit while seeming a pocket-friendly option to your viewers.

• You constantly need to deliver high-quality content that interests your subscribers for them to keep sticking with your channel.

➡️ When To Monetize With Subscription?

You can use the subscription revenue model when you can ensure regular content to retain viewers for the long term.

Also, you can use the subscription model if you are not into providing live sports matches or such exclusive events.

Which Is The Best Option For You?

Further on Pay Per View and subscription, whether you should choose PPV or subscription depends entirely on the kind of content you provide. You can also always choose a blend of both and get the best of both worlds. Several streaming platforms provide hybrid revenue options; choosing such platforms can increase your earning potential and upgrade your creation strategy.

Essentially, you should choose a revenue option that ensures you maximum earnings and is practically possible for you.

How GUDSHO’s Pay-Per-View model helps creators?

• It liberates creators to set their desired prices
• You can set your own validity period for rentals
• The analytical dashboard lets you have all the necessary insights
• Marketing assistance improves your overall marketing strategy
• Geo-restriction lets you restrict the content in preferred regions
• Monetize live videos under PPV video platform
• The toggle option lets you choose to monetize

How GUDSHO’s Subscription model help creators?

• Boost your sales and revenue with customized emails  
• Enhance visibility and personalization with in-app notifications
• Use Toggle to switch on and off monetization
• Put your desired validity time for subscriptions
• International currency exposes to maximum earning potential
• Analytical dashboard for advanced demographics
• Geo-restrictions lets you determine the streaming location

Key Takeaways

Both subscription and PPV revenue models have advantages and disadvantages; to ensure you get the maximum benefits, choose the one that compliments your content the most.

Subscription offers a great variety of content with a single subscription amount, thus becoming the top choice of viewers. PPV is more suitable for exclusive content that viewers can stream until a specific time.

Both revenue models have been growing and becoming the choice of many creators. To determine whether you should choose PPV or subscription, a creator should always check their audience; choose a revenue model your audience would find suitable.

FAQ